15.12.2015 - This is what happens when oil-rich nations can't pay their bills
Low oil prices can be devastating for some states. Take Venezuela for example, where oil represents 95% of the country’s exports and more than half of its GDP. Venezuela now suffers from crippling inflation and is on the edge of default. Other states have been more prudent with their money and have buffers in the form of sovereign wealth funds (SWF). (SWFs are state run investment funds that invest in stocks, bonds, real estate, precious metals, and other alternative investments.) As of March 2015, sovereign wealth funds around the world held $7.1 trillion in assets according to the Sovereign Wealth Fund Institute. Of which about $4.29 trillion is derived from nations dependent on oil and gas revenues. Five of the world’s largest SWFs that depend on energy revenues account for 45% of total global SWF assets...............................................Full Article: Source
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